The Sygnia Skeleton Balanced 40 Fund is a low-risk, multi-asset-class global balanced portfolio managed on a passive basis. The underlying investments are allocated to a number of specialist index-tracking portfolios managed by Sygnia and third party asset management companies that specialise in passive asset management.
“Our funds are designed to challenge the status quo, because we want our investors to feel like the world is their oyster, that everything is possible.”
Kyle Hulett, Head of InvestmentsInvestment objective and strategy
The Sygnia Skeleton Balanced 40 Fund is a SouthAfrican - Multi Asset Low Equity
portfolio and shall comprise of investments in multiple asset classes, which may also
include international assets. The effective equity exposure (including foreign equities but
excluding listed property shares) will always be below 40%. The Portfolio will not exceed
a combined foreign and domestic equity exposure of 40% (excluding listed property).
The Portfolio will not exceed listed property exposure of 25%. The Portfolio will not
exceed a combined equity and property exposure of 65%.
What the fund invests in
| Sector | Percentage | Allocation |
|---|---|---|
| Domestic Bonds | 25.2 | |
| International Equities | 21.4 | |
| Domestic Income | 16.9 | |
| Domestic Equities | 14.4 | |
| Domestic Money Market | 12.4 | |
| International Cash | 5.1 | |
| International Fixed Interest | 4.5 |
Risk profile
The risk in the fund is managed by spreading investments across asset classes, which
deliver uncorrelated returns over time. This ensures diversification of sources of returns
over market cycles. Tactical asset allocation is used to take advantage of short-term
mispricing opportunities in the market in an efficient and cost-effective manner and as a
risk management tool in times of market downturns.
Who should invest
The Sygnia Skeleton Balanced 40 Fund has an overall 40% allocation to South African
and global equities and has a low risk profile. It is a highly suitable vehicle for long-term retirement funds seeking conservative strategies. It is also suited to individual
investors seeking to maximise their long-term returns in a risk-controlled manner. The
strategy complies with Regulation 28 of the Pension Funds Act 1956, as amended,
and is therefore suitable for investors in retirement annuity, preservation, pension and
provident funds.
And for how long?
A minimum of 2 to 4 years.
Sygnia charges an annual management fee calculated and accrued daily. This fee is payable monthly in arrears.
| Initial Fees | 0.00% |
| Management Fees | 0.35% per annum (excluding VAT) |
| Performance Fees | N/A |
| Other Expenses | 0.01% |
| VAT | 0.05% |
| Total Expense Ratio (TER) | 0.42% (Dec 2023) |
| Transaction Costs (TC) | 0.05% (Dec 2023) |
| Total Investment Charge (TIC) | 0.47% (Dec 2023) |
Fee disclosure
Sygnia does not provide advice and therefore does not charge advice fees. If a financial planner is appointed, initial and ongoing advice fees may be payable as agreed upon between you and your financial advisor. The payments of these fees are facilitated by the Linked Investment Service Provider (LISP) and not directly by Sygnia. A higher TER does not necessarily imply a poor return, nor does a low TER imply a good return. The current TER may not necessarily be an accurate indication of future TER’s. Transaction Costs are a necessary cost in administering the Financial Product and impacts Financial Product returns. It should not be considered in isolation as returns may be impacted by many other factors over time including market returns, the type of Financial Product, the investment decisions of the investment manager and the TER.
Disclaimer
The Sygnia Group is a member of the Association for Savings and Investment SA. Sygnia Collective Investments RF (Pty) Ltd is a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium to long-term investments. Sygnia Asset Management (Pty) Limited (FSP 873), an authorised financial services provider, is the appointed investment manager of the Fund. The portfolio may invest in other unit trust portfolios which levy their own fees, and may result in a higher fee structure and that the value of investments / units / unit trusts may go down as well as up. Past performance is not necessarily a guide to future performance. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and charges and maximum commissions is available from the Manager on request. Performance is based on NAV to NAV calculations with income reinvestments done on the ex-div date. Performance is calculated for the portfolio and the individual investor performance may differ as a result of initial fees, actual investment date, date of reinvestment and dividend withholding tax. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio. Collective investments are calculated on a net asset value basis, which is the total market value of all assets in the portfolio including any income accruals and less any deductible expenses such as audit fees, brokerage and service fees. Forward pricing is used. All the portfolio options presented are approved collective investment schemes in terms of Collective Investment Schemes Control Act, No 45 of 2002 (“CISCA”). The fund may from time to time invest in foreign countries and therefore it may have risks regarding liquidity, the repatriation of funds, political and macroeconomic situations, foreign exchange, tax, settlement, and the availability of information. The Manager has the right to close any portfolios to new investors to manage them more efficiently in accordance with their mandates. A copy of the Minimum Disclosure Document (MDD) is available on our website: www.sygnia.co.za